The Atari 130-XE was first shown at the Winter Las Vegas Consumer Electronic Show in 1985 (with the Atari 130 ST), it has the same characteristics as the Atari 800 XL except its added memory (128 KB instead of 64 KB for the 800 XL). The extended memory can be used as a RAM disk, or can be accessed by bank switching routines. It was an attempt to extend the life of the old XL series, but Atari abandoned it pretty quickly to concentrate on promoting the ST series, which uses the same case style.

Several XE machines were also produced:

The Atari 65-XE (which is exactly like the 800 XL, except for the rear parallel connector, which it doesn't have)

The Atari XE Game Console (1987) which is a 65-XE with an optional detachable keyboard. It was Atari Corp.'s attempt to do what they felt the 5200 should have been.

The 65-XEM (a computer with a special custom sound chip called "Amy"). Reports stated that the Amy chip sounded better than the Commodore 64 's SID chip (!). This machine would never be released

The 65-XEP (Atari's answer to the Commodore SX-64, it would never be released either)

A modified 65XE was sold in Europe as the 800XE

The Atari 65-XE and 130-XE will have a very short life due to the 16 bit home computer competition.